FORT LAUDERDALE, Fla.--(BUSINESS WIRE)--Tender Armor, a fraud prevention payments solution provider, today announces the company’s first product, CvvPlus. The CvvPlus real-time, dual-factor, out-of-band, fraud prevention solution authenticates cardholders conducting Card-Not-Present (CNP) transactions. The solution utilizes a rapid, and low cost deployment model available for implementation across all financial institutions (FIs) card portfolios, as well as any card present transactions requesting a payment security code such as a CVV2 code in order to complete the transaction.
As card fraud at the Point of Sale (POS) trends downward with the roll out of EMV chip cards, fraud on CNP transactions are projected to triple by 2018 resulting in skyrocketing charge-offs in excess of $11.4 Billion in the U.S. CvvPlus can significantly reduce fraud exposure off-setting the increased risk for financial institutions, cardholders, and merchants.
CvvPlus is an easy to use, real-time, fraud prevention solution that stops fraud before it can occur. Cards that have CvvPlus utilize two sources of data, the card number, plus a daily security code provided to the cardholder through their mobile phone or email. The code is simple to use, and on demand text-messaging access makes it easy to retrieve. Most importantly, the daily code is kept separate from the payment card and the account number, making the solution more secure than the standard on-card CVV2 code or other on-card delivery methods. The system methodology exceeds PCI requirements, limiting the possibility of fraud from data breaches.
“With the October 2015 EMV chip card mandate and liability shift, consumers are forced into a new POS experience now inserting EMV chip payment cards into terminals for the sake of security. Though these new chip based payment cards deter fraud on card present transactions it cannot address CNP fraud, making CNP transactions the point of least resistance for fraudsters. Tender Armor addresses the heightened risk of online ecommerce and over the phone purchases, by offering cardholders, FIs, and merchants the security needed to stave off CNP Fraud. We offer a simple and secure transaction experience, which can be deployed on every card currently in consumer wallets,” said Madeline K. Aufseeser, CEO of Tender Armor.
The CvvPlus benefits are realized for all stakeholders throughout the entire transaction process. FIs realize the benefits of CvvPlus through slashing CNP charge-off losses, reducing administrative expenses, minimizing payment card reissues, cutting cardholder attrition, and avoiding costly reputational damage. Consumers gain greater control over their payment cards while having a more secure and easy to use CNP purchasing experience.
Analyst Quotes:
“Most similar solutions in market require cards be re-issued that incorporate more advanced and expensive technology, while this solution is deployed and used with existing cards. Thus far this is the broadest solution that I've seen to address the CNP Fraud prevention market. The timing of this quick and easy to deploy solution is ideal, given the perfect storm of EMV liability shift, holiday shopping and the known threat of CNP Fraud on the rise,” said Tim Sloane, VP, Payments Innovation, Mercator Advisory Group.
“Tender Armor is the sort of innovative solution that I have been advocating for years. With the ability to modernize security for both card present and CNP transactions with no need for hardware changes on the part of the retailers, why wouldn’t any retailer, especially those with and ecommerce presence, seriously consider CvvPlus to reduce fraud loss?,” said, David Monahan, research director, security and risk management at Enterprise Management Associates. “As a former CISO of an ecommerce payments company, I would have loved to have been able to recommend implementation of a solution like CvvPlus to the card issuers and my ecommerce customers.”
About Tender Armor
Based in Fort Lauderdale, FL, Tender Armor brings to market new technologies to prevent fraud on payment cards. Tender Armor is led by payments industry luminary, co-founder, and CEO Madeline K. Aufseeser. Tender Armor’s premiere product, CvvPlus is a real-time, dual-factor, out-of-band fraud prevention solution primarily for card-not-present (CNP) payment card transactions. CvvPlus can also be utilized in any card present transactions requesting a CVV2 or payment card security code to complete the transaction.
